Capital: Difference between revisions
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1. ''Financial accounting''. | 1. | ||
''Financial accounting''. | |||
Money the business owes the owner. This is equal to assets minus liabilities (including debt). In other words, the equity. | Money the business owes the owner. This is equal to assets minus liabilities (including debt). In other words, the equity. | ||
2. ''Corporate finance''. | 2. | ||
''Corporate finance''. | |||
More broadly, the total amount of funding available for the operations of a firm. This would include both its debt and its equity. | More broadly, the total amount of funding available for the operations of a firm. This would include both its debt and its equity. | ||
3. ''Company law''. | 3. | ||
''Company law''. | |||
More narrowly in the company law context, the component of the total equity represented by the share capital of the company. | More narrowly in the company law context, the component of the total equity represented by the share capital of the company. | ||
4. ''Economics''. | 4. | ||
''Economics''. | |||
One of the 'factors of production' in economics, the others classically being labour, land and enterprise. | One of the 'factors of production' in economics, the others classically being labour, land and enterprise. | ||
Revision as of 10:57, 11 May 2016
1.
Financial accounting.
Money the business owes the owner. This is equal to assets minus liabilities (including debt). In other words, the equity.
2.
Corporate finance.
More broadly, the total amount of funding available for the operations of a firm. This would include both its debt and its equity.
3.
Company law.
More narrowly in the company law context, the component of the total equity represented by the share capital of the company.
4.
Economics.
One of the 'factors of production' in economics, the others classically being labour, land and enterprise.
In this context, 'capital' refers to the things that have been created to help in the production process, like machinery, factories and transport facilities.
